Satiate Agri Ltd Management Discussions

Satiate Agri Limited ("the Company") is a public listed Company incorporated in December 31, 1986. The equity shares of the Company are listed on BSE Ltd under Security Code No.: 524546 at BSE.

Economic Review

Global Economy

Despite facing recessionary threats, geopolitical uncertainties, trade disruptions, and inflationary pressures, global growth in 2024 remained subdued, with world GDP estimated at 3.3%. This growth was uneven and largely driven by the robust performance of the US economy. Central banks in developed economies, led by the US, implemented strategic rate cuts as inflation began to ease, though their approach remains cautious.

Amid political and economic uncertainties, including elections in major democracies, the global economy showed resilience. However, significant risks persist:

• Intensifying geopolitical tensions • Persistent inflation • Potential financial market volatility

At the same time, transitions in green energy and digitalization offer opportunities for innovation and sustainable growth. Coordinated global efforts will be critical to navigating these challenges and supporting development.

Outlook

The International Monetary Fund (April 2025) has revised global growth projections for 2025 downward to 2.8%, from the earlier forecast of 3.3%. This slowdown is mainly driven by the impact of new trade measures, rising uncertainty, and weakening business and consumer sentiment.

Indian Economy

Indias economy continued to show resilience amid global uncertainty, supported by strong domestic consumption and sustained government spending. Inflation has moderated, and liquidity conditions have stabilized, reflecting effective policy measures. However, risks remain from foreign portfolio outflows and a weakening rupee. For the full fiscal year 2025, the economy grew by 6.5% indicating steady economic momentum. Indias macroeconomic fundamentals remain strong, underpinned by healthy corporate and financial sector balance sheets. To sustain and accelerate long-term growth—especially as globalization slows—India must leverage its demographic dividend through structural reforms and deregulation, laying the foundation for a more competitive, dynamic economy.

Outlook

The Reserve Bank of India (RBI) forecasts GDP growth at 6.5% for FY25, supported by: • Rising agricultural and industrial output • Resilient rural demand • Strong private investments • Improving consumer sentiment

Despite geopolitical and trade uncertainties, Indias growth momentum is expected to remain firm. The economic outlook remains favorable, underpinned by strong fundamentals, a young and growing workforce, increasing formalization of the economy, and targeted policy initiatives. Medium-term prospects are expected to be further bolstered by accelerated infrastructure development, higher public capital expenditure, and productivity-enhancing structural reforms.

Industry Review

Indian Agriculture Industry

The agriculture sector remains the backbone of Indias livelihood economy. As one of the worlds top producers of agricultural and food commodities, Indias agri-sector plays a vital role in both domestic sustenance and global supply chains. Along with its allied sectors, agriculture is the largest source of employment in the country, engaging approximately 55% of the population and contributing around 16% to the national GDP.

The agriculture sector continued its strong momentum in FY25, recording an impressive 5.4% growth in the January–March quarter—significantly higher than the 0.9% growth during the same period last year. This robust performance is expected to lift the full-year Gross Value Added (GVA) in agriculture and allied activities to 4.6%, up from 2.7% in FY24. A key driver of this growth was the favourable monsoon, which contributed to healthy kharif and rabi harvests, boosting overall agricultural output.

Today, the sector is witnessing a significant transformation driven by technological innovation and digital adoption. Government initiatives aimed at improving farmer welfare—such as enhanced access to credit, insurance, and support services—are driving inclusive growth and creating a more resilient and future-ready agri-ecosystem.

Agrochemical Industry

According to Rubix Data Sciences, Indias agrochemical market is estimated at USD 11.2 billion in FY2025, registering 8.7% year-on-year growth despite global disruptions. The export slump in FY2024 was largely attributed to inventory destocking, intense pricing pressure from China, and subdued demand in key global markets. However, with improving global agricultural activity and stabilising supply chains, a moderate recovery is expected in FY2025, buoyed by Indias cost-efficient manufacturing capabilities.

A standout trend seen is the surge in herbicide exports, which clocked a 20% CAGR between FY2020 and FY2025. Their share of Indias total agrochemical exports rose from 31% to 37%, underscoring rising global demand—driven by high agricultural labour costs—and Indias strength in delivering affordable, high-quality crop protection products.

There has been a geographic shift in herbicide demand, with Japan surpassing Brazil as the second-largest export destination. Meanwhile, the US and Brazil remain dominant markets for Indian insecticides and fungicides. While exports declined by 22% in FY2024, the sector is projected to reach USD 14.5 billion by FY2028, growing at a CAGR of 9%.

Opportunities

? Emerging Markets: Expansion into rapidly growing markets with increasing demand for agricultural products.

? Sustainability and Organic Products: Rising consumer demand for sustainably sourced and organic products presents new market opportunities.

? Technological Advancements: Adoption of precision agriculture, blockchain, and other technologies to enhance supply chain transparency and efficiency.

? Strategic Partnerships: Forming alliances with tech companies, logistics providers, or other stakeholders to enhance capabilities and market reach.

? Product Diversification: Expanding into new product categories, such as value-added or processed goods, to capture higher margins.

? Government Support and Subsidies: Accessing government grants, subsidies, or favorable trade agreements that support agricultural exports.

Threats

Global geopolitical tensions, such as the Russia-Ukraine conflict, pose risks to international trade stability. Resulting sanctions, tariffs, and supply chain disruptions can lead to price volatility and reduced availability of key raw materials and finished goods, potentially impacting margins and operational efficiency.

Segment wise or product wise performance

The Company has identified its activities as single segment.

Outlook

The outlook for Indias agriculture and rural economy remains upbeat, supported by favourable developments such as a robust rabi wheat harvest, increased summer sowing activity, and the forecast of an above-average southwest monsoon. Rising rural consumption, a revival in informal sector momentum, and easing inflation are expected to create a conducive environment for agricultural growth. As the sector grapples with the complex challenges of food security, climate change, and sustainable development, the path forward will depend on the thoughtful integration of innovation, technology, and policy support—anchored in ecological responsibility. Coordinated actions across governments, farming communities, academia, and industry will be essential to building long-term resilience.

Reinforcing this optimism, India has set an ambitious foodgrain production target of 354.64 million tonnes for 2025–26. This record-setting goal is underpinned by expectations of favourable monsoon conditions and supported by targeted efforts to strengthen kharif crop performance, ensure fertilizer availability, and drive pan-India campaigns promoting modern, productivity-enhancing farming practices.

Risks and concerns

The company has laid down a well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process. A detailed exercise is being carried out to identify, evaluate, manage and monitor and non-business risks. The Audit Committee and the Board periodically review the risks and suggest steps to be taken to manage/ mitigate the same through a properly defined framework. During the year, a risk analysis and assessment was conducted and no major risks were noticed, which may threaten the existence of the company.

Internal control systems and their adequacy

To ensure this, the company has installed a system of internal control, which is reviewed, evaluated and updated on an ongoing basis. Our auditor has conducted periodic audits to provide reasonable assurance that the companys established policies and procedure have been followed. However, there is inherent limitation that should be recognized in weighing that assurance provided by any system of internal control.

Discussion on financial performance with respect to operational performance

During the year under review the total income was Rs. 10.00 Lacs as compared to Rs. 20.40 Lacs of the previous Year 2023-24. After making all necessary provisions for current year and after taking into account the current year net profit and total provisions for taxation, the surplus carried to Balance Sheet is Rs. (104.17) Lacs. The Promoters, Board of Directors and entire management team are putting their stern effort to come out from the adverse financial circumstances and to achieve targeted turnover in the segment of agriculture projects.

Material developments in Human Resources / Industrial Relations front, including number of people employed.

During the year the Company had cordial relations with staff and officers. The Company believes in empowering its employees through greater knowledge, team spirit and developing greater sense of responsibility. There were 1 employee as at March 31, 2025.

The Company maintained healthy, cordial and harmonious industrial relations at all levels. Despite severe competition, the enthusiasm and unstinting efforts of the employees have enabled the Company to remain at the forefront of the industry. It has taken various steps to improve productivity across organization.

KEY FINANCIAL RATIOS ANALYSIS

Details of key financial ratios are as follows:

S. NO.	PARTICULARS	FY 2025	FY 2024	REMARKS
1.	DEBTORS TURNOVER RATIO	-	-	-
2.	INVENTORY TURNOVER RATIO	39.19%	64.19%	Decrease due to increase in average inventory
3.	CURRENT RATIO	0.89	2.06	Decrease due to increase in current liabilities
4.	TRADE PAYABLES TURNOVER RATIO	109.05	14.88	Increase due to increase in trade payables
5.	DEBT EQUITY RATIO	-8.54	0.35	Decrease due to increase in outstanding loan
6.	NET PROFIT RATIO (%)	-1041.70%	-42.15%	Decrease due to decrease in net profit
7.	RETURN ON CAPITAL EMPLOYED (%)	-214.08%	-15.49%	Decrease due to increase in Loss during the year.

Cautionary Statement

Statements made herein describing the Companys objectives, projections, estimates and expectations may be ‘forward looking within the meaning of applicable laws and regulations. As forward-looking Statements are based on certain assumptions and expectations of future events over which the Company exercise no control, the Company cannot guarantee their accuracy nor can it warrant that the same will be realized by the Company. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in Government regulations, tax laws, economic developments and other incidental factors.

By and order of the Board of Directors

For Satiate Agri Limited

Place: Indore

Date: 06.09.2025

SUDHIR JAIN

MANAGING DIRECTOR

DIN: 00046442